Sunday, February 15, 2009
Not so immune after all
Prime London residential prices fell 3.7% in January 2009, the second highest monthly decline on record, according to the Knight Frank Prime Central London Index. Overall prime London prices have fallen 21.4% since the March 2008 peak. Knight Frank Research has pushed its forecast for the peak to trough fall in prime central London from 30% to 35%. It still expects the bottom of the market to hit in mid 2009. Liam Bailey, head of residential research, Knight Frank, commented: "In early 2008 it was generally held that London's unique situation, with very strong demand set against weak supply, would help it escape the worst of the housing market downturn. As we reached late summer last year, it became apparent that no part of the market was immune. Every area and type of property was hit."